In what ways may the small retail sellers of the following products differentiat
ID: 1141751 • Letter: I
Question
In what ways may the small retail sellers of the following products differentiate their goods from those of their rivals to make themselves monopolistic competitors: hamburgers, radios, cosmetics? How will these factors affect sales? Provide specific examples to support your answer. In what ways may the small retail sellers of the following products differentiate their goods from those of their rivals to make themselves monopolistic competitors: hamburgers, radios, cosmetics? How will these factors affect sales? Provide specific examples to support your answer.Explanation / Answer
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Answer-
Hamburgers- these outlets can differentiate themselves based on the taste and presentation of the food to create a monopolistic competition. This type of outlets can only fights based on the good which is easily replaceable if they have the different taste, culinary style and effective resource that can make the food look impressive not just to the tongue but also to the eyes. This way the marginal rate of substitution will decrease. The sale will definitely increase if the differentiation is successful.
Example can be of KFC, which has differentiated it self I every local and international market it operates by changing the product offering and the product taste for its success.
Radios- The radio is an element of electronic industry and the only possible way to differentiate the product is to in the design and the feature being offered. The radio works on frequency that will be same across the companies and the product as it is regulated by the government. Hence the only possible way of differentiation is to change the design that can range from pocket friendly to radios that can work as portable speakers. This feature range will create trademark for the company. The sales will be derived by the utility curve in the market of this electronic market as it has several product substitutes.
Example can be Harman Ltd, which started as Radio manufacturers and were able to monopolistically control the market due to the efficient speaker and design features.
Cosmetics- The completion in this space has been enormous ever since the boom of film- industry and textile manufacturing making pace. The only way to differentiate here and be a monopolistic player is by offering a wide quality and priced product. If the company aims to target top audience then it will have to have the product line up which suits the skin type, pricing and variety across age groups. The company can have a monopolistic sales position by consumer affection and trust is easily lost here, hence affecting sales.
The successful example of monopolistic competition here can be Mac industries, which have been dominating the Asian market in the middle range products by offering wide variety of products and in different price ranges as well.
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